WT/MIN(24)/13  
 
21 February 2024  
(24-1591) Page: 1/3 
Ministerial Conference  
Thirteenth Session  
Abu Dhabi, 26 -29 February 2024  Original: English  
 
FUTURE OF TRADE  
COMMUNICATION FROM THE UNITED ARAB EMIRATES  
The following communication, dated 5 February 2024, is being circulated at the request of the 
delegation of the United Arab Emirates.  
 
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1  THE CHANGING GLOBAL TRADE CONTEXT  
1.1.  In the ever -evolving landscape of global business,  several  transformative  trends  are reshaping  
the nature of trade. The profound  impact of technological disruption has revolutionized established 
paradigms, streamlining supply chains and foste ring a more connected and digitized trade 
environment. Simultaneously, the growing role of emerging economies is reshaping traditional trade 
dynamics, introducing new opportunities and challenges for businesses on a global scale.  
1.2.  Sustainability has emerged  as a central theme, with businesses increasingly integrating eco -
friendly practices into their operations, responding to both consumer demands and a broader 
commitment to environmental  responsibility. Furthermore, a notable shift towards inclusion is 
underway, as efforts to reduce  trade barriers  and promote  fair practices  aim to facilitate  the 
participation  of businesses  of all sizes and  locations  in the global  marketplace.  Lastly,  the rising  
importance  of services  trade,  propelled  by digital connectivity and cross -border collaboration, stands 
as a driving force in the shifting landscape of global commerce. Together, these trends collectively 
contribute to a dynamic and interconnected business ecosystem,  shaping  the trajectory  of 
international  trade and laying  the foundation  for its future  evolution.  
Trend 1 : Technological Disruption in Trade  
1.3.  The world today stands on the brink of a technological transformation . The global landscape 
has been reshaped by the interplay of the COVID -19 pandemic, geopolitical shifts, and disruptions 
in supply chains. These challenges have underscored the critical importance and transformative 
potential of digital technologies in shaping the future of trade.  
1.4.  In this context, emerging technologies such as artificial intelligence (AI), blockchain, and the 
Internet of Things (IoT) are poised to revolutionize the trade ecosystem. These innovations hold the 
promise of streamlining and fortifying supply chains, ensuring greater resilience an d efficiency. 
Distributed Ledger Technologies (DLT), exemplified by blockchain, provide a secure, shared 
database that enhances transparency and real -time validation of information across supply chain 
actors. The implementation of DLT facilitates accurate,  pre-arrival customs declarations and 
manifests, thereby enabling timely cargo removal and reducing overall labor input. Moreover, IoT 
solutions play a crucial role in processing real - time supply chain information, offering features like 
'digital seals' t o monitor container conditions, enhancing port productivity, and optimizing 
turnaround times. Meanwhile, AI -driven advancements, including smart robotics and automated 
customs solutions, hold the potential to revolutionize warehousing, packaging, and custo ms 
procedures, offering substantial cost savings and efficiency gains.  WT/MIN(24)/13  
 
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  1.5.  As we navigate this transformative era of trade, it becomes imperative for the international 
community to embrace and adapt to these technologies, fostering a collaborative environment that 
ensures the sustainable growth and resilience of global trade. The need of the hour is proactive 
collaboration to shape policies and standards that facilitate greater innovation and cooperation on 
key technologies. Embracing a collective approach ensu res a harmonized regulatory environment, 
fostering seamless integration of emerging technologies into global trade practices. It will also be 
the linchpin for establishing interoperable  frameworks that encourage cross -border cooperation, 
enhance technologi cal diffusion, and pave the way for the development of common standards.  
Trend 2 : Growing Role of Emerging Economies in Global Trade  
1.6.  Emerging markets have grown more interconnected with the global trade network, playing a 
significant role in international commerce. They have seen a rise in their contribution to global 
exports and have diversified their export portfolios. At the same time, these economies have become 
significant importers, especially in areas such as  energy, minerals, and food, showing their  
substantial demand for products from abroad.  
1.7.  The rise of emerging economies in global trade can be attributed to several factors. These 
nations have undergone economic reforms, adopted export -oriented policies, and leveraged 
technological advancements to enhance their competitiveness. Additionally, the liberalization of 
trade policies and the proliferation of regional trade agreements have facilitated increased cross -
border transactions.  
1.8.  As global connectivity advances further, profound changes are anticip ated in trade corridors 
spanning Africa, Asia, and the Middle East, outpacing the global average growth rate. This 
momentum signifies a departure from established corridors towards dynamic high -growth routes. 
Projections indicate that by 2030, South Asia w ill emerge as the fastest -growing export region, 
propelled by robust trade relationships with neighboring regions.  
1.9.  As these economies continue to grow, their influence on global trade governance is expanding. 
These nations are actively participating in sha ping the rules of the international trading system, 
challenging traditional economic power structures. Looking ahead, it is imperative to embrace a 
future where all emerging and developing countries actively participate in global trade, contributing 
to and  benefiting from the interconnected global economy. Concerted efforts are needed to create 
opportunities, reduce barriers, and cultivate a collaborative environment that ensures the full 
integration of emerging economies into the fabric of the evolving glo bal trade landscape.  
Trend 3 : Sustainability at the Heart of Global Trade  
1.10.   Sustainability has become a focal point in shaping supply chain dynamics for the future. A 
confluence of factors, including commitments to combat climate change, the surge in conscio us 
consumerism, and the establishment of global governance standards for sustainability, is driving a 
fundamental shift towards more environmentally responsible and socially conscious global supply 
chains. Recognizing the interconnected nature of sustainab ility, these commitments are poised to 
influence every facet of global trade, spanning raw materials, intermediate products, the product life 
cycle, and the entire value chain involving business partners and suppliers.  
1.11.   This transformative journey towards s ustainable trade is accompanied by a wave of policy 
innovations that are shaping the landscape. Initiatives such as green product labeling, national green 
freight programs, and Green Public Procurement Policies are gaining momentum, incentivizing 
businesse s to adopt eco -friendly  practices. Additionally, trade facilitation for renewable energy 
equipment is playing a pivotal role in advancing sustainable technologies globally. Notably, some 
regions and countries are taking assertive steps by implementing Envi ronmental Tariffs and Border 
Carbon Adjustments, effectively directing producers towards the adoption of greener technologies 
and processes, thereby enhancing their market access.  
1.12.   Moving forward, a commitment to sustainability emerges as not only an ethica l imperative 
but also a strategic necessity. International cooperation will be critical to implement green initiatives, 
promote innovation and the adoption of eco -friendly technologies to address climate concerns and 
adhere to global governance standards t hat prioritize sustainability across entire supply chains.  WT/MIN(24)/13  
 
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  Trend 4 : Focus on Inclusion in Global Trade  
1.13.   Currently, even though small and medium -sized enterprises (SMEs) account for 90% of 
businesses worldwide, their participation in international trade is limited. The limited participation of 
SMEs in international trade has a significant impact on the engagement of women and youth in the 
global market. As larger companies with greater resources dominate, barriers to entry for women 
and young entrepreneurs become more pronounced.  
1.14.   The global emphasis on sustainability and the swift technological advancements reshaping 
trade are inadvertently imposing an additional, unintended constraint. Sustainability requirements 
in international trade  agreements, including eco -friendly production and ethical supply chain 
practices, demand significant investments in technology and compliance mechanisms. Larger and 
more resource -rich companies can easily meet these requirements, gaining a competitive 
advantage. Additionally, technological advancements like automation and artificial intelligence 
enhance efficiency but require substantial financial investments, disadvantaging smaller enterprises.  
1.15.   Looking ahead, by implementing policies that reduce regulator y obstacles and improve 
financial accessibility, a favourable environment can be established to stimulate the growth of small 
and medium -sized enterprises (SMEs) and their involvement in international trade. Encouraging 
collaborations between SMEs and larg er companies can offer crucial guidance and access to new 
markets, thereby boosting the global competitiveness of SMEs, and consequently, also enabling the 
meaningful involvement of women and youth in the evolving realm of international commerce. 
Adopting this inclusive strategy is vital for tapping into the full capabilities of a diverse array of 
entrepreneurs and ensuring that the advantages of global trade are shared fairly throughout the 
community.  
Trend 5 : Services Trade - A Driving Force in the Shifti ng Landscape of Global Commerce  
1.16.   The forthcoming years are poised to witness a profound transformation in the landscape of 
global trade, with services trade emerging as a dominant and influential force on the international 
stage. This paradigm shift reflect s the growing significance of the services sector, which has become 
one of the fastest -growing segments in the global economy, contributing to more than two -thirds of 
the total global economic output.  
1.17.   Underscoring the increasing prominence of services trad e, global services exports reached an 
unprecedented US$7.1 trillion in 2022, constituting nearly one -fourth of the total value of global 
trade and equating to 7.1% of the world's GDP. Digitalization and technological advancements have 
fuelled  this shift, e nabling the seamless cross -border flow of services. E -commerce platforms, cloud 
computing, and digital communication tools have democratized international trade, allowing smaller 
companies to participate more actively. This robust growth not only reflects the economic weight of 
the services sector but also emphasizes its pivotal role in shaping the interconnected nature of global 
trade. Moreover, the surge in digitally enabled service trade is a notable trend that is expected to 
gain further momentum, ampli fying the role of technology in facilitating cross -border service 
transactions and contributing to the overall expansion of the services trade domain.  
1.18.   Looking forward , there is a compelling need to recognize and adapt to this transformative 
trend. Embracin g the growth of the services sector, which contributes significantly to the global 
economy, demands proactive measures to foster cross -border collaborations, enhance digital 
infrastructure, and create regulatory frameworks that facilitate the seamless flow  of services. 
Furthermore, there is a pressing need for robust global regulatory frameworks and addressing the 
digital divide to ensure that service trade is more inclusive in nature.  
 
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